Allegiant’s quarterly earnings double
Allegiant Travel Co. more than doubled its second quarter earnings as it reined in nonfuel expenses, the company reported late Wednesday.
During the period, the parent company of Allegiant Air boosted revenues 15.3 percent compared to 2011 to $231.2 million, as the numerous added fees that can come with an Allegiant ticket and its commissions from hotels, rental cars and packages booked through its website rose at a faster clip than base fares.
Net income went up 110.8 percent to $25.2 million, or $1.30 a share. The average of 16 analysts predicted earnings of $1.24 a share.
The earnings were announced after the stock market closed Wednesday.
Shares were flat at $66.50 in after-hours trading. During the day, however, the stock fell $4.56 a share, or 6.2 percent, after the securities firm Dahlman Rose downgraded the company to a sell recommendation because of its reliance on leisure travelers at a time the economy looks shaky.
Total expenses went up 5.3 percent, with maintenance declining as Allegiant as spending dropped from a year ago when an engine overhaul program was in full swing. When measured as a share of total flying or passengers, expenses dropped from one year ago.
